WallStSmart

The Chefs Warehouse Inc (CHEF)vsDollar General Corporation (DG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Dollar General Corporation generates 930% more annual revenue ($42.72B vs $4.15B). DG leads profitability with a 3.5% profit margin vs 1.7%. CHEF appears more attractively valued with a PEG of 1.08. DG earns a higher WallStSmart Score of 65/100 (C+).

CHEF

Buy

52

out of 100

Grade: C-

Growth: 5.3Profit: 5.0Value: 6.7Quality: 5.0

DG

Buy

65

out of 100

Grade: C+

Growth: 6.7Profit: 6.0Value: 8.0Quality: 5.0
Piotroski: 5/9Altman Z: 2.00
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CHEFUndervalued (+36.2%)

Margin of Safety

+36.2%

Fair Value

$100.55

Current Price

$75.70

$24.85 discount

UndervaluedFair: $100.55Overvalued
DGUndervalued (+31.8%)

Margin of Safety

+31.8%

Fair Value

$215.69

Current Price

$115.88

$99.81 discount

UndervaluedFair: $215.69Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CHEF0 strengths · Avg: 0/10

No standout strengths identified

DG4 strengths · Avg: 8.5/10
EPS GrowthGrowth
121.9%10/10

Earnings expanding 121.9% YoY

P/E RatioValuation
16.9x8/10

Attractively priced relative to earnings

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.27B8/10

Generating 1.3B in free cash flow

Areas to Watch

CHEF4 concerns · Avg: 2.5/10
Profit MarginProfitability
1.7%3/10

1.7% margin — thin

Operating MarginProfitability
4.7%3/10

Operating margin of 4.7%

P/E RatioValuation
45.1x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-9.6%2/10

Earnings declined 9.6%

DG2 concerns · Avg: 2.0/10
Profit MarginProfitability
3.5%3/10

3.5% margin — thin

Debt/EquityHealth
2.021/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : CHEF

Revenue growth of 10.5% demonstrates continued momentum. PEG of 1.08 suggests the stock is reasonably priced for its growth.

Bull Case : DG

The strongest argument for DG centers on EPS Growth, P/E Ratio, Price/Book. PEG of 1.36 suggests the stock is reasonably priced for its growth.

Bear Case : CHEF

The primary concerns for CHEF are Profit Margin, Operating Margin, P/E Ratio. A P/E of 45.1x leaves little room for execution misses. Thin 1.7% margins leave little buffer for downturns.

Bear Case : DG

The primary concerns for DG are Profit Margin, Debt/Equity. Debt-to-equity of 2.02 is elevated, increasing financial risk. Thin 3.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

CHEF carries more volatility with a beta of 1.34 — expect wider price swings.

CHEF is growing revenue faster at 10.5% — sustainability is the question.

DG generates stronger free cash flow (1.3B), providing more financial flexibility.

Monitor FOOD DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DG scores higher overall (65/100 vs 52/100). CHEF offers better value entry with a 36.2% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

The Chefs Warehouse Inc

CONSUMER DEFENSIVE · FOOD DISTRIBUTION · USA

The Chefs' Warehouse, Inc., distributes specialty food products in the United States and Canada. The company is headquartered in Ridgefield, Connecticut.

Dollar General Corporation

CONSUMER DEFENSIVE · DISCOUNT STORES · USA

Dollar General Corporation is an American chain of variety stores headquartered in Goodlettsville, Tennessee.

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